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Abercrombie & Fitch Stock Drops on Revenue Miss

Abercrombie blew away analysts' earnings estimates for the second quarter but missed on revenue. The stock is lower.
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Shares of Abercrombie & Fitch  (ANF) - Get Abercrombie & Fitch Co. Class A Report dropped Thursday afternoon after the company reported mixed second-quarter results. 

For the fiscal second quarter ended July 31, earnings were $1.70 a share on revenue of $865 million. 

Net sales for the second quarter grew 24% year over year and 3% from 2019. 

Analysts polled by FactSet were expecting earnings of 77 cents a share on revenue of $879.2 million. 

"We have had a strong start to the U.S. back-to-school season. Reception to the Gilly Hicks brand relaunch, associated product, and updated store experiences has been very positive," Chief Executive Fran Horowitz said in a statement. 

The stock at last check dropped 11% to $35.46 a share. 

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The New Albany, Ohio, company in the previous quarter posted a surprise profit. It benefited as people returned to stores after the pandemic lockdowns ended and the U.S. economy reopened. 

"Looking ahead, we will remain on offense and are confident that the proactive steps we have taken to evolve our operating model and cost structure, combined with evolved brand positioning, should continue to yield near and long-term benefits," Horowitz said. 

The company ended the quarter with $900 million in cash and equivalents, compared with $800 million at the end of the year-earlier period and $1.1 billion at Jan. 30, 2021.

The company repurchased about 2.4 million shares in the quarter as part of its authorization to purchase 6.5 million shares. 

During the quarter, the company also finalized an agreement with and paid its landlord partner to settle the remaining obligations for its flagship Hollister store in New York, which closed in 2019.